Bankrupt IT Co. Pays Investors $1.3M Over Faulty Reporting

Law360, New York (June 26, 2017, 6:13 PM EDT) -- Bankrupt information technology servicer Code Rebel Corp. has agreed to pay $1.3 million to end a proposed investor class action alleging its executives approved inaccurate financial statements, according to a settlement filed in New York federal court Monday.

Shareholders had pushed for preliminary approval of the all-cash deal, labeling it a "highly favorable result" considering Code Rebel's filing for Chapter 7 bankruptcy protection last year.

"The proposed settlement follows plaintiffs' investigation, the company's bankruptcy and significant arm's-length negotiation in the face of a bankrupt company with...
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